US equity fund firm NYLIM
Jacob Ballas India has
invested
200 crore for a
minority stake in Karaikal
Port Pvt Ltd, a subsidiary of
Chennai-based MARG Ltd. The
funds will be used for the MARG
Karaikal Port expansion plans
which will enhance the port's
capacity from the planned
expansion of 21 million tpa to
28 million tpa.
MARG Karaikal Port, a multicommodity
port between Chennai
Port and Tuticorin Port, is
strategically located in the middle
of this 680-km coastline,
which makes it the new gateway
to Tamil Nadu.
Commenting on the investment,
GRK Reddy, Chairman and Managing
Director, MARG Ltd, said,
"The investment from NYLIM-JB
Fund into MARG Karaikal Port
comes in at an opportune time.
Karaikal Port had already attracted
private equity investments by
India Infrastructure Fund and
Ascent Capital Advisors in the
past. With the present investment
by NYLIM-JB Fund, MARG
Karaikal Port has three institutional
investors adding value by
their infrastructure exposure and
expertise to augment and fuel the
ambitious growth plans of
Karaikal Port."
Sunil Chawla, Partner, Jacob
Ballas Capital India Pvt. Ltd,
investment advisor to the investment
manager of NYLIM-JB
Fund, said: "The need for incremental,
efficient port infrastructure
in the country is well known,
given increasing volumes and
the relatively high turnaround
time at some of our ports. Against
that backdrop, we see Karaikal
Port emerging as a port of choice
on the southeastern coast, with
efficient operations backed by
world class infrastructure."
Project profile
MARG Karaikal Port, awarded
on BOT basis by the Puducherry
government in 2006, when fully
developed is envisaged to have a
total of nine berths capable of
handling up to 47 million tpa.
The port is to be developed over
three phases with the final phase
getting operational by 2017.
The port's cargo handling capacity
and capabilities increased significantly
in the past 12 months as
two new deep draft berths were
operationalised, taking the total
number of berths available at the
port to five. The port has deployed
dedicated infrastructure to handle
containers and liquid cargo and
expanded the existing facilities
catering to dry bulk cargo.